© Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 Sustainable Development Benoît-H. Koch – Executive Committee North America St. Louis, September 14, 2010 2 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 Agenda 1 Holcim’s Approach to Sustainable Development – The Triple Bottom Line 2 Energy & Climate 3 Our Achievements & Commitments 3 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 Sustainable Development: A part of our mission Vision: We want to provide foundations for society's future. Mission: We want to be the world's most respected and attractive company in our industry – creating value for all our stakeholders. Holcim Strategy House: Working within the triple bottom line 4 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 Commitment across the Group • There are sound business motivations for building SD into business strategy, including:  Maintain our license to operate  Mitigating risk and leveraging opportunity  Reduce operating costs and increase revenues  Ability to attract and retain employees  Improve access to capital  A voice in the policy debate • Our SD performance is widely recognized –  Awards won by Group companies are evidence of this commitment  Member of the DJSI World and Stoxx Index and the FTSE4Good Index 5 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 Agenda 1 Holcim’s Approach to Sustainable Development – The Triple Bottom Line 2 Energy & Climate 3 Our Achievements & Commitments 6 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 Regardless of politics, reducing CO 2 emissions is a sensible strategy in any case Reducing CO 2 emissions goes hand in hand with improving… • …other ecological indicators  Energy consumption  Natural resources (land, water, ecosystem impact)  Emissions of NOx, SO 2 , VOCs…… •… stakeholder relationships •… public perception of the company •… and costs ! CO 2 is not only a threat, but also an opportunity! 7 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 The 2009 Copenhagen Accord demonstrated that climate politics are not merely a European preoccupation,… • For the first time ever, major emerging economies (China, Brazil, South Africa, Mexico, Indonesia) committed to some form of CO 2 mitigation commitment • This lifts major barrier for commitments and actions by rich countries, incl. USA, Canada, Japan and Australia • While the Copenhagen Accord is a non-binding political accord, it has been signed by the majority of heads of state and may therefore result in the political commitment needed to conclude an internationally binding legal agreement in the future 8 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 … but there is yet no clarity on how CO 2 emissions will be regulated on a global level • USA: Federal bill on Emissions Trading Systems has been shelved by the Senate. Uncertainty remains over how far the EPA could push regulation via the Clean Air Act • Canada: Waiting for legislation in the USA • N. Zealand: Since the 1 July 2010 has included in its ETS industrial emitters such as Holcim’s operations • Australia: Well advanced efforts have been put on halt in anticipation of a general election • India: Developing a trading system for energy efficiency improvement certificates, aimed at entering into force in 2011 • China: Developing an emissions trading system to enter into force in 2011 9 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 CO 2 regulations have a particularly high impact on the cement industry, due to its very high financial exposure • Concrete and cement have relatively low embedded CO 2 intensity, compared to other commodities such as steel, copper and aluminum • However, despite the low CO 2 intensity of the product, the cement industry has a very high financial exposure, with a high CO 2 emission per financial added value, a result of the low cost of the products ton CO 2 e/ton product kg CO 2 e/US $ Revenue CO 2 e and Financial Intensity of Individual Products 10 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 • Lower clinker factor • Use of alternative fuels • New cement capacity with best available technology The use of waste as an alternative fuel provides a benefit to Holcim and society There are three drivers for improving CO 2 performance [...]... Event 2010 Holcim supports International Committee of the Red Cross (ICRC) • New partnership with the ICRC on humanitarian projects in conflict affected regions, where Holcim is active • Holcim member of the ICRC Corporate Support Group • Support of projects in Sudan (access to water) and Colombia (water supply and sanitation systems) 18 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 Sustainable. .. of Aggregates with recycled material 14 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 Innovative affordable housing - an inclusive business solution • 12 affordable housing programs mainly in Latin America and Asia • Over 27,000 families have benefitted from affordable housing schemes A model affordable home being constructed in Nagarote, Nicaragua 15 © Holcim Ltd 2010 Investor / Analyst... Markets Event 2010 Agenda 1 Holcim’s Approach to Sustainable Development – The Triple Bottom Line 2 Energy & Climate 3 Our Achievements & Commitments 12 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 Holcim met its CO2 reduction target ahead of schedule – new ambitious target set for 2015 • • 1990-2009: 2010 target reached ahead of schedule: CO2 emissions per tonne of cement down by... Event 2010 Sustainable Development Report 2009 - Highlights Performance • 2010 CO2 target achieved ahead of schedule • 80% of product portfolio is now composite cements • 12.1% of thermal energy is derived from alternative fuels • Clinker factor amongst the lowest in the industry (70%) • LTIFR reduced by 73% since 2004 • Productive partnerships with IUCN and ICRC New targets set • Further reduction of CO2... Corporate on CSR Sustainable Development Report Holcim Code (CSDR) of Conduct 4th CSDR 5th CSDR 3rd party involvement 1st Cycle Member of the WBCSD & cofounder of the Cement Sustainability Initiative (CSI) 2nd Cycle 3rd Cycle CSI progress report Launch Agenda for Action Partnership GTZ CSI progress report GTZ Holcim guidelines Partnership IUCN Partnership ICRC 3rd party recognition 20 © Holcim Ltd 2010 Investor... part of Holcim's global commitment to compliance with competition laws, please note that this presentation has been comprehensively reviewed by counsel in both the United States and Switzerland 22 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 Strength Performance Passion 23 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 ... Capital Markets Event 2010 Contact information Bernhard A Fuchs Marco Knuchel Binit Sanghvi Investor Relations Phone +41 58 858 87 87 Fax +41 58 858 80 09 investor.relations@holcim.com www.holcim.com/investors Mailing list: www.holcim.com/subscribe 21 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 Disclaimer Cautionary statement regarding forward-looking statements This presentation may... approvals from authorities; (6) technical developments; (7) litigation; (8) adverse publicity and news coverage, which could cause actual development and results to differ materially from the statements made in this presentation Holcim assumes no obligation to update or alter forward-looking statements whether as a result of new information, future events or otherwise As part of Holcim's global commitment... Capital Markets Event 2010 Promotion of sustainable construction through the Holcim Foundation for Sustainable Construction • Platform to promote sustainable construction • Activities include: Holcim Awards competitions, Holcim Forum symposiums, seed funding for building initiatives • 3rd Awards cycle: rewarding innovative approaches Gold Silver Bronze Innovation 16 © Holcim Ltd 2010 Investor / Analyst... of the solution • Second most widely used product after water • Forms the foundation of economic development and prosperity • Modern infrastructure inconceivable without concrete • Due to long life cycle, reusability and low CO2 content concrete is one of the most energy-efficient and eco-friendly materials 11 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 Agenda 1 Holcim’s Approach . © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 Sustainable Development Benoît -H. Koch – Executive Committee North America St. Louis, September 14, 2010 2 © Holcim Ltd 2010 Investor. Markets Event 2010 Promotion of sustainable construction through the Holcim Foundation for Sustainable Construction • Platform to promote sustainable construction • Activities include: Holcim Awards. sanitation systems) Holcim supports International Committee of the Red Cross (ICRC) 19 © Holcim Ltd 2010 Investor / Analyst Capital Markets Event 2010 Sustainable Development Report 2009 - Highlights Performance •